The European Shareholders of Bougainville Copper (ESBC) believe that a take-over of Rio Tinto's by BHP Billiton is an “intelligent” idea.
But it also believes that if BCL — which Rio Tinto owns 53 per cent— is taken over by Chinese companies, the move would be “fatal” for the people of Bougainville. ESBC president Axel Sturm, who has been a very pro-BHP takeover strongman in recent months, said this week the once-war-torn province may benefit greatly if BHP Billiton took over Rio Tinto.
“A take-over of Rio Tinto by Chinese investors would be fatal for Bougainville,” Mr Sturm said in a statement.
"Chinese companies are well-known in the world for non-respect of their employees and environmental matters as well. “A merger between these two big companies may be an intelligent step to solve also the actual problems in Bougainville.”
He added: “With 53 per cent, Rio Tinto is the major shareholder of Bougainville Copper Ltd. (BCL). This fact seems to represent still a hindrance for some people on the island that belongs to Papua New Guinea and to its autonomous government ABG. Some people still believe that Rio Tinto was the only group responsible for the environmental impact by mining and the unrest that cost the lives of thousands of Bougainvilleans.
“A new leadership by BHP Billiton might make (it) easier to resume mining in the world's third biggest copper-, gold- and silver mine in the next years,” the former German journalist said. In April this year, ESBC threw its support behind BCL for mining activities to begin within the next three years.
"This is the beginning of a brilliant future of Bougainville and its region.” Mr Sturm said.

A deadline imposed by British authorities urges BHP Billiton to decide if they want to make a new take-over bid for Rio Tinto or not until February 6th. This caused rumours that came up in Asia on Monday. BHP Billiton & Rio Tinto were back in talks again.

"A merger between these two big companies may be an intelligent step to solve also the actual problems in Bougainville," said the president of the European Shareholders of Bougainville Copper Ltd. (ESBC), Mr. Axel G. Sturm, on Thursday in Andorra.

With 53%, Rio Tinto is the major shareholder of Bougainville Copper Ltd. (BCL). This fact seems to represent still a hindrance for some people on the island that belongs to Papua New Guinea and to its autonomous government ABG. Some people still believe that Rio Tinto was the only responsible for the environmental impact by mining and the unrest that cost the lives of thousands of Bougainvilleans.

A new leadership by BHP Billiton might it make easier to resume mining in the world's third biggest copper-, gold- and silver mine in the next years.

"Until now our board of directors did a very good job," said Mr. Sturm, "but a take-over by BHP might have a positive impact on their excellent work. As most of Bougainvilleans know very well that their prosperity in the future depends on mining, a BHP leadership may be a right step for resuming of mining activities in Bougainville. A take-over of Rio Tinto by Chinese investors would be fatal for Bougainville," said Mr. Sturm.

"Chinese companies are well-known in the world for non-respect of their employees and environmental matters as well. We think that a merger between these two companies that share the same ideals is a benefit for all."

18.12.2007 SCOOP (New Zealand)

Bougainville Copper Emerging from the Ashes

17.12.2007 SCOOP (New Zealand)

Outstanding report on Bougainville Copper Limited

Ladies and Gentlemen,

it's a great pleasure for me to announce that the famous European analyst, Mr. Swen Lorenz, just published a in-depth-report on Bougainville Copper Limited. You can find his analyses here: http://www.undervalued-shares.com/

On 95 pages Mr. Lorenz analyses the true value of one of the biggest copper, gold and silver assets of the world. The share price of Bougainville Copper doubled within the last 6 months and is supposed to rise further in the next weeks.

The European Shareholders expect even a share price of 30,00 AUD (20,00 €) in 5 years from now.

THE European shareholders of Bougainville copper (ESBC) declared its solidarity to support Bougainvillean women with their claim they expressed in a meeting with representatives of the World Bank in Bougainville recently.
“For us, there is no question that the women must be included in decision-making on Bougainville,” ESBC president Axel G Sturm said last week.
“We consider the role of women as a pole of peace on the island.
“We agree totally that the actual problems in transportation, telecommunication, health service and education have to be resolved as soon as possible with the involvement of women in the decision-making,” he said.
Mr Sturm underlined that it was very important to destroy all guns on the island.
“But remember that there is also one other major weapon that has not been mentioned,” Mr Sturm said.
“The name of this weapon is corruption. Only if the people of Bougainville would learn that they must stand together and work together without taking profit for one person or one family only, they would be able to overcome the actual economic and social crisis.
“The re-opening of the Panguna mine would be a great step forward to a better future for all.
“All Bougainvilleans have to be realistic. Only agriculture will not pay the enormous amounts of money that are needed to bring a better future and work to the people of Bougainville,” he said.
“In fact new roads, hospitals, schools, public transport, telecommunication and a lot of other things that are needed to be paid with the income generated by Bougainville Copper Ltd,” he added.

06.11.2007 DOW JONES NEWSWIRES

INTERVIEW:BougainvilleCopper Mine Long Way Off

By Elisabeth Behrmann

SYDNEY (Dow Jones)--Discussions to restart mining at Bougainville Copper Ltd.'s (BOC.AU) Panguna mine in Papua New Guinea are ongoing, but a resumption of mining activity on the autonomous island is still a long way off, the company secretary said this week.

"Discussions have been going on for a long time, but the mine is still a no-go zone," Paul Coleman told Dow Jones Newswires in a telephone interview, responding to press reports that the ongoing dialogue with the Papua New Guinea and autonomous Bougainville governments could soon lead to a formal renegotiation of the Bougainville Copper Agreement, which covered royalties and land access.

Anglo-Australian miner Rio Tinto Ltd. (RIO.AU) shut the Panguna operation in 1989 following attacks on infrastructure and after dissatisfaction among workers from the local population over royalty payments spiraled into open warfare on Bougainville Island, which resulted in the area becoming an autonomous zone.

Since talk of progress for Bougainville Copper hit the market, its share price has doubled to A$1.80, adding over 30% in the space of three trading days from late October to Nov. 1.

"Our discussions are focusing on general mining concepts, and while there is continual dialogue, it's difficult to talk about a restart of the mine. It's still a long way before any restart to mining activity," said Coleman.

Panguna produced about 180,000 metric tons of copper annually and at the time ranked as the world's third largest copper mine, but there has been no resumption of exploration or mining as site access is still off-limits despite the formation of an autonomous island government.

Rio Tinto owns 53.85% of the company, valued at A$603 million, and the

Papua New Guineagovernment another 19.9%. The European Shareholders of Bougainville Copper, a group of individual private investors, is also pushing for a restart of the mine.

The capital cost to restart the mine is pegged around US$1.2 billion.

Mining contributes around 50% to Papua New Guinea's exports, with petroleum and gas adding another 25%. Other companies active in the country include Lihir Gold Ltd. (LGG.T) and Barrick Gold Corp. (ABX).

In a short statement on Monday the president of the European Shareholders of Bougainville Copper (ESBC), Mr Axel G. Sturm said in France: “We are very satisfied, after years of agony, the Panguna district will become revitalized now.

The European friends of the Bougainville people and the investors in Bougainville Copper Ltd (BCL) will keep an eye on the future politics of BCL.

We want that the suffering of the people comes to an end and that everybody soon will live in prosperity with work and healthcare for all. Especially the fact that weapons will disappear now from the region makes me very happy.

If ABG-president Joseph Kabui succeeds in transforming Bougainville into a prosperous and secure country he will enter in history as a great leader.

BCL and the European Shareholders will do their very best that Bougainville will become one of the nicest places in the world to stay in. So let us stand together and work on a better Bougainville.

Remember: BCL is the best brand for the island that will soon been known all over the world for peace, prosperity and intelligent politics. Now, after the roadblocks are lifted, it is time that the ABG, the Me’ekamui and the landowners declare Panguna a welcome-zone.”

The stock markets all over the world were extremely down on Monday while the stocks of Bougainville Copper (BCL) impressed by soaring more than 8 percent at the Frankfurt (Germany) stock exchange.

Background: Swen Lorenz, a well-known European analyst, had surprised the investor's public with a detailed in-depth-report (http://undervalued-shares.com) on the Rio-Tinto subsidiary that, until now, remained closed for nearly 20 years due to severe local unrest in the concerned Panguna district of the tropical island Bougainville (Papua New Guinea).

The so-called Panguna mine and seven other leases are owned by BCL (Rio Tinto 53.8%) and is supposed to be re-opened within the next three years after enduring intensive negotiations.

The Andorra based President of the European Shareholders of Bougainville Copper (ESBC), Mr. Axel G. Sturm, pointed out that Mr. Lorenz' analyses are very correct: "BCL is like a Phoenix reborn from the ashes!

The fair value of BCL shares is round about 30 AU$ once the mining is producing again." The ESBC-members expect the BCL shares rising up to five AU$ in a first step within the next six months. And Swen Lorenz compares BCL with Katanga Mining Limited in his report. Those shares rose in Toronto from 4 CA$ in April 2006 to 26 CA$ in August 2007.

The European Shareholders of Bougainville Copper are clearly still out of touch, proof being this comment: "mining technology made a giant step forward. Severe damage of nature can be avoided today."

What bizarre planet do such comments originate from ?

This is a ridiculous comment - the scientific understanding and technology existed when Bougainville opened, what was missing was the commitment to operate a proper, engineered waste management plan for waste rock and tailings. In Australia in the 1970's almost every single mine was required to build and operate well engineered tailings dams and manage waste rock appropriately (the notable exception being Mt Lyell, Tasmania - which still has Panguna-esque pollution legacy also visible from simple services such as Google Earth).

For waste rock and tailings, the technology has not improved or changed much at all (some would even say imperceptibly), with the only minor differences being the rehabilitation strategies now used combined with better sampling and monitoring during operations. The recognition that poor waste rock and tailings can cause a massive scale of environmental pollution and associated social impacts is certainly better - but in reality the technology has not changed much at all.

Any future operation of Panguna/Bougainville - IF AT ALL - must develop a proper, engineered waste management plan for waste rock and tailings, as well as undertake massive scale works to remove and remediate heavily polluted areas.

This is the legitimate position I understand many locals and landowners are coming from.

In my own professional judgement, I would be extremely skeptical of any claim that 'severe damage … can be avoided'. If BCL were to adopt modern environmental standards such as those they operate to in Australia or the United States, they could certainly minimise the extent and nature of environmental and social impacts - but never avoid them completely. A degree of impacts is the very nature of mining - sound predictions before mining and managing impacts during and after mining requires sound science and not blind faith, hope and industry rhetoric.

Actions speak voluminously louder than words.

I am optimistic and hope I could be convinced otherwise for Panguna/Bougainville - but must remain a realist until proven otherwise.

30.08.2007 POST-COURIER (Port Moresby /PNG)

Shareholders welcome move by ABG

THE European Shareholders of Bougainville Copper (ESBC)group has welcomed the establishment of talks between the Autonomous Bougainville Government and the Bougainville Revolutionary Army.
President Axel G. Sturm said from France in a statement, “we are very surprised about the positive news from Bougainville and we appreciate very much that now the time has come to start serious discussions on future mining in the Panguna area.
“We are also glad that President Joseph Kabui wants to meet Mr Albanese from Rio Tinto. Congratulations to him too that he visited the No-Go-Zone. We hope that Panguna now will become a ‘welcome zone’ and that our experts can visit the mine in the near future.”
Mr Sturm represents the third biggest group of investors in BCL in Europe. The ESBC claim for fairness between all parties involved in the Panguna copper project and fights for mining that has only minimal environmental impact.
“Since the Panguna mine was closed, mining technology has made a giant step forward,” Mr Sturm said.

29.08.2007 SCOOP (New Zealand)

ESBC Lauds Positive News from Bougainville

The president of the European Shareholders of Bougainville Copper (ESBC), Mr Axel G. Sturm, declared on Wednesday in France: “We are very surprised about the positive news from Bougainville and we appreciate very much that now the time has come to start serious discussions on future mining in the Panguna area. We are also glad that President Joseph Kabui wants to meet Mr Albanese from Rio Tinto. Congratulations to him too that he visited the No-Go-Zone. We hope that Panguna now will become a Welcome-Zone and that our experts can visit the mine in the near future.”

Mr Sturm represents the third biggest group of investors in BCL in Europe. The ESBC claim for fairness between all parties involved in the Panguna copper project and fights for mining that has only minimal environmental impact. “Since the Panguna mine was closed,” said Mr. Sturm, “mining technology made a giant step forward. Severe damage of nature can be avoided today. In our discussions with the BCL board of directors we always point out that the latest and most modern techniques must be used in Bougainville. That is why the reopening of the Paguna mine is estimated round about 1.2 billion US Dollars (K3,54 billion). This is a very important investment in the future of Bougainville and the Bougainvillean people.” Addressing to Chief David Sisito Mr Sturm said: “The ESBC is open to every fair discussion with our partners. But we remember too that the ‘coin Panguna’ has two sides like every coin. One side is fulfilled with mistakes of Rio Tinto and others in the past, but the other side is represents the struggle of the Bougainvilleans for their independence from PNG. We should not forget this either. We agree to talks with Mr. Sisito to discuss all his claims of compensation as published today. But Mr. Sisito, are you ready too to talk with us about compensation of financial losses for the shareholders of BCL within the last 18 years when the mine staid closed?” Mr. Sturm: “I mean we are a new generation of people who is acting now and who have to shoulder a big task. That means that we all have to work together to build up a better future for Bougainville. The European Shareholders of BCL are ready to face their responsibility in fairness and good will.”

20.08.2007 SCOOP (New Zealand)

BCL: New President for ESBC

The European Shareholders of Bougainville Copper (ESBC) appointed unanimously Axel G. Sturm as president. Until now Mr. Sturm represented the third biggest group of investors in BCL as spokesman.

In a first statement Mr. Sturm said: "The ESBC are very proud to support the ongoing process of restoration of mining in Bougainville. The reopening of the Panguna-mine by BCL will soon bring a lot of work and money to the island and all Bougainvilleans will take profit of that.

We invite the ABG and President Kabui to work together with us on the solution of the outstanding problems."

13.08.2007 POST-COURIER (Port Moresby/PNG)

Support for talks

The European Shareholders of Bougainville Copper (ESBC) welcomed the invitation of ABG-President Joseph Kabui to start talks with the chief executive officer of Rio Tinto, Tom Albanese, on the future of the Panguna mine.
Spokesman Axel G. Sturm outlined on Wednesday in France, that any step leading to a solution for the agony in Bougainville would find the strong support of the European Shareholders of BCL.
“It would be very helpful,” said Mr Sturm, “if all parties involved in mining in the Panguna area, could finally ban the shadows of the past and work together. We believe that it would be the best for the people of Bougainville and the ABG to find an agreement with BCL to re-open the mine as soon as possible.”

11.08.2007 SCOOP (New Zealand)

Mysterious ASX-Trades on Bougainville Copper

The European Shareholders of Bougainville Copper Limited proposed on Friday 10th of august a trading halt for BOC shares to the Sydney based Australian Stock Exchange and claimed for an official investigation on mysterious trades executed within the last 4 months.

"It began last April," said Axel G. Sturm , the spokesman of the third biggest group of investors in the giant copper, gold and silver mining company, "when suddenly very small orders were executed at the end of the ASX stock market session or even a couple of minutes after the market had closed. These orders had two things in common: they brought down the share price a couple of cents which means 4 percent or more. But these orders never appeared in the order books - neither in the BID nor in the ASK."

Within the last three weeks the trades became the more and more mysterious: nearly daily there were numerous extreme small orders like 2, 4, 6 or 9 shares that were exchanged. These orders too did not appear in the order books. "We are convinced," said Mr Sturm "that there are some gamblers on Bougainville Copper who try to manipulate the market price severely in order to keep the exchange price as low as possible. Therefore we asked the ASX now to bring light into the actual situation. Especially for foreign investors it is not acceptable that such doubtful trading will influence the market prices. This represents a hindrance for foreign investors."

Last May Peter Taylor , CEO of Bougainville Copper Limited, announced on the annual shareholder meeting in Port Moresby (PNG) a 3-years-plan for the reopening of the BCL owned Panguna mine which is considered as one of the biggest copper mines of the world.

10.08.2007 The National (Port Moresby/PNG)

ABG-Rio Tinto talks on Panguna welcomed

THE European Bougainville Copper Ltd (BCL) shareholders have welcomed talks between the Autonomous Government of Bougainville (ABG) and Rio Tinto to discuss the future of the abandoned Panguna copper mine on the island.
This is subsequent to ABG President Joseph Kabui’s move to call for a meeting with Rio Tinto’s chief executive officer Tom Albanese to resolve issues surrounding Panguna and to formalise the legal disengagement of Rio Tinto from Panguna and Bougainville.
BCL is owned 53.58% by Rio Tinto, 19.06% by the Papua New Guinea Government, and the rest of the 27.36% by public shareholders.
Mr Kabui said the company should be answerable to some of what happened on the island while calling on assistance for the islanders to help them move forward to build consensus for the resumption of mining-related activity on the island.
The letter from Mr Kabui to Mr Albanese also said high on the agenda was the remediation of and compensation for the environmental damage to Panguna, with both the upper and lower tailings and the legal exit of Rio Tinto and BCL from Bougainville.
Axel Sturm, the spokesperson for the European shareholders from France, recently said any step leading to a solution for the actual agony Bougainville would find has strong support of the European shareholders of BCL.
“It would be very helpful if all parties involved in mining in the Panguna area could finally ban the shadows of the past and work together.”
“We believe that it would be best for the people of Bougainville and the ABG to find an agreement with BCL to reopen the mine as soon as possible.”
“The name Bougainville Copper Ltd would become a synonym for successful investment and modern industrial on the island of Bougainville in the international financial world,” Mr Sturm said.
Mr Sturm noted of Rio Tinto renowned approach as a serious business partner that could take on the giant mining project as that of Panguna.
He added that as Panguna are Anglo Australian it would be very difficult for the ABG to find other partners to trust and as such the talks between the BCL and ABG are most called for by the BCL European shareholders.

12.06.2007 Post-Courier (Port Moresby / PNG)

BCL shareholders condemn theft

The European Shareholders of Bougainville Copper (ESBC) declared that they were absolutely not amused to read about the robbery of 500 kilograms of gold from Bougainville’s resources.
“We demand an unreserved investigation of that scandal,” said ESBC spokesman Axel G. Sturm on Friday in Andorra.
“We expect that President Joseph Kabui -— hopefully in co-operation with the police officers just arriving from Australia and New Zealand — will soon shed light on this shameful incident.”
Mr Sturm said that the shareholders were upset because imagined the good that could have been done for the Bougainvillean people with such an enormous amount of K30 million instead of filling the pockets of a few.
“For that we demand that those criminals are brought to justice where they should face a severe penalty,” he said.
Further the European Shareholders said in a statement that only a fast re-opening of the Panguna mine by a big and experienced company like Bougainville Copper Limited could guarantee regular and controlled mining on Bougainville.

03.04.2007 Post-Courier (Port Moresby / PNG

BCL shareholders give nod to company plans

The European Shareholders of Bougainville Copper have welcomed the intention of Bougainville Copper Limited (BCL), to return to exploration and mining in Bougainville within the next three years.
Bougainville Copper Limited owned 53 per cent by the international mining giant Rio Tinto, 19 per cent by the Government of PNG and the remainder by individual shareholders said in its 2006 annual report that it had developed a three-year plan to return to exploration and profitable mining in Papua New Guinea.
The mine was closed since 1989 due to unrest in the Panguna mine area and the rest of Bougainville.
“We are extremely satisfied that finally the things seem to come to a good end,” said spokesman Axel G. Sturm. “If serious companies like Bougainville Copper Limited and Rio Tinto make such statements,” said Mr. Sturm, “they must be completely convinced, that they will reach their targets as presented to the public. This is the beginning of a brilliant future of Bougainville and its region.”
Mr Sturm was responding to a report in the Post-Courier yesterday that stated BCL the return to exploration and profitable mining was just one of the many things that the former world class miner had put down on its “to do” list for this year.
The others include pushing ahead with the Bougainville Copper Agreement review and the settling of the tax dispute between the State and BCL.

15.03.2007 Post Courier (Port Moresby / PNG)

Ord shares tumble

SHARES in Australian junior miner Ord River Resources tumbled to their lowest point yesterday after the Autonomous Bougainville Government stopped talks of reopening the Panguna mine.
It opened yesterday trading at $A0.49 cents (K1.20) after trading at around $0.70 cents at the end of last month.
When negotiations started with the ABG on the possible reopening of the Panguna mine late last year, Ord River shares were trading at around $0.99 cents (K2.44).
They dropped to just below $0.70 (K1.72) when the ABG President Joseph Kabui decided against continuing further talks on the Panguna mine.
Ord River advised the Australian Stock Exchange on Tuesday that it was yet to be formally notified by representatives of the Autonomous Bougainville Government on the withdrawal of discussions about investment in mining projects in Bougainville.
“The company has been trying today (Tuesday) to obtain clarification on the media report from both the Autonomous Bougainville Government and the National Government of Papua New Guinea, but has not yet been able to contact representatives of either party,” said company secretary Patrick Yue.
An official announcement is expected with the next few days.
The mining and exploration leases on Panguna and the surrounding areas are still held by Bougainville Copper Limited, a subsidiary of Rio Tinto.
European shareholders of Bougainville Copper said last week that it would have been “an elegant” solution if Ord River tried to become the major stakeholder of Bougainville Copper Ltd. “But that also implies that Ord River has to buy out Rio Tinto. Even if Ord River enjoys strong support by the State of China, we doubt if they are able to shoulder $US1 billion (K3.15 billion) to $US2 billion (K6.30 billion) minimum for the 53 per cent block of Rio Tinto shares plus around $US1 billion (K3.15 billion) for the reopening,” said Andorra based spokesman Axel Sturm.
Mr Sturm claimed European experts valued BCL shares at $A5 to $A10 each once a reopening is announced and at $A20 to $A30 once it started producing copper.

14.03.2007 Sydney Morning Herald

Copper dream loses its glint

Ord River's plans to reopen the Bougainville behemoth might have come to a sudden halt.

The Papua New Guinea press reported the autonomous government of Bougainville had ended discussions with Ord River after months of talks about reopening the giant copper mine.

Ord River - which also claims to have made "potentially … one of the most significant copper discoveries in Australian copper mining history" in the Kimberley - without sinking a drill hole, yesterday said it had not received any notification from the government and had not been able to clarify the reports.

But even if the government did agree to reopen the mine, which has been closed since 1989, Ord River would have to contend with Rio Tinto.

Last week, a group calling itself the European Shareholders of Bougainville Copper noted in a press release:

"It would be an elegant solution if Ord River tries to become the major stakeholder of Bougainville Copper. But that also implies that Ord River has to buy out Rio Tinto. Even if Ord River enjoys strong support by the state of China, we doubt if they are able to shoulder $1 billion to $2 billion minimum for the 53 per cent block of Rio Tinto shares plus around $US1 billion for the reopening."

The group, led by Andorra-based spokesman Axel Sturm, claimed unnamed European experts valued Bougainville Copper shares at $5 to $10 each once a reopening is announced, and at $20 to $30 each once it started producing copper.

Papua New Guinean newspaper, “The National”, reported that the Autonomous Bougainville Government (ABG) has proposed the possible re-opening of Bougainville Copper’s (ISIN PG0008526520) Panguna mine to Australian mining company Ord River Resources. Joseph Kabui confirmed the news but added that outstanding environmental, legal and social issues concerning the mine should be dealt with first.

The proposal was well received by the “European Shareholders of Bougainville”, an organized group of European shareholders of Bougainville Copper, who immediately released a statement afterwards.

Spokesman Axel G. Sturm said “it is a very wise decision of Mr. Kabui to consider the re-opening of the Panguna mine now”, but he doesn’t believe that Ord River Resources could buy out Bougainville Copper’s major shareholder Rio Tinto, even with strong financial support from China. Sturm added that experts of his organization estimate a fair value of A$5 to A$10 per BCL-share once the re-opening is announced and expect the price to rise to somewhere between A$20 and A$30 when the mine is operating again based on the current prices of precious metals.

We have not seen anything concrete that leads us to back a valuation that high, but we still believe that if the mine is reopened, it could lead to a price of many times the current price. Remember, that this is a very long-term hold – one to “stick in your bottom draw”. HOLD.